Improve Your Spending Habits and Take a Vacation!

This sounds crazy right? Improve spending habits by spending a chunk of money on a vacation? Like many things this may not work for everyone but can be effective for some. The key is knowing your personality and tricking yourself psychologically.

Most people who have tried a consistent workout and healthy eating plan are very familiar with "Cheat Days." This is a day where you don't watch your caloric intake and you certainly don't think twice about eating those cookies or that big juicy burger. It serves the purpose of giving your mind a break and it "resets" your body making the healthy eating days easier to cope. Psychologically, it makes you more motivated to get back on track the next day. The same is the case for taking a break from working out. Different people recommend different lengths but on average you should take a break from your workouts every 6-8 weeks. It let's your body respond to the intense training you have done and helps prevent burnout and injury. Also psychologically, just like the cheat day, your mind is able to regain its desire to want to get back into the gym. Typically when you start a workout and healthy eating plan you start off being very disciplined but by week 6 or so you may miss a workout here and there or you may treat yourself to an extra large meal. The desire and motivation starts to wane. Taking a break renews the motivation again. When you start back after the break you do so with the same intensity, focus and discipline you had at the beginning.

Try the same for your spending habits. Take a vacation. Maybe it’s only a few days away but the key is: spend some money. It’s ok. When you get back to your normal routine you should feel a new desire to save and watch your spending again. Especially after you see your bank account dip. Of course, don't spend money you don't have and charge the trip to a credit card that you can’t pay off.

Just like you have to plan a diet or workout program the same should be done for a vacation. Start planning it months or weeks in advance and start setting aside money. It can be much easier to save for a shorter term goal than one that is 20 or more years away (like retirement). However, it does help build skills and discipline that are needed for longer term goals. Developing this discipline can pay off in the long run.

This post originally appeared here.

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Matthew Brock, CFP® is the owner of Divergent Planning

Securities and Investment Advisory Services Offered through H. Beck, Inc., Member FINRA, SIPC. H. Beck Inc. and Divergent Planning are not affiliated.